A boat manufacturer from the UAE has been making waves at boat shows across the globe with feature-packed offerings at affordable price points. Barely a year into operations, Abu Dhabi-based Emocean Marine has already sold more than 30 boats, or what the market has dubbed 'pocket yachts'. The company's Chief Executive Hamad Kassab Bachi tells Emirates Business how the company has profited from the global recession.
Your pocket-sized yachts have created quite a buzz. How did the name come about?
The term was coined after people saw the initial drawings of our 27-foot boat and found that it packed so many features and made a clever use of space. They felt it looked more like a mini-yacht, so the term 'pocket yacht' came out of that experience and has stuck ever since.
But people today are very cautious with their spending and are looking for quality and brand legacy. As a newcomer, how do you allay such doubts?
It is because we are in an environment where people are conscious of where they spend their money that we are doing well. The downturn has made them less sensitive about brands and more interested in seeing good value for their money. Last year really was the best time to launch for a new manufacturer with state-of-the-art designs, high-quality production and innovative solutions at a reasonable value. We are certified by all the major organisations in the world such as the US Coast Guard, so this tells you the safety features and quality of construction there.
How have sales fared. What's on the assembly line?
We can build one boat a week at present. So far, in every exhibition, we have been voted either the best boat in show or bestselling boat and I can tell you that 50 per cent of this year's capacity is already spoken for. The price range for these boats is between Dh260,000 and Dh400,000. Features unique to boats of this size include generators, air-conditioning, sleeping for four, misting systems and so forth.
We have a plan to build a product in three different sizes - 27ft, 37ft and 47ft. On each of these platforms we have three different ranges. The 'Super Sports', which are used for fishing, diving, water sports and so on.
We have the 'Day Sports' boats, which are more geared towards style and lounging. And we have the cabin crew boats. We launched our first boat a year ago, the second one four months ago and the third a month ago. This completes our 27ft range. The 37-footer will be out by the end of this summer and early next year we will launch the 47s. This will probably be the complete range for the next two to three years.
Why did you decide to launch during the recession?
Everything is cyclical. We've started at the bottom of the cycle. If you were going to choose to get into a new industry, probably a time where you can hire cheaper is ideal. You can have access to material faster and cheaper provided you are not under financial pressure. We had no prior commitments or loans.
So we actually accelerated our programme dramatically in November 2008 when we saw things going south very quickly. We figured it was the best time to launch. And the results speak for themselves. Today, we have just two boats in stock, which we use for display. Every boat we've been able to produce, we have sold. Nearly 60 per cent of our sales have gone to Europe. We have sold more than 30 boats to date and we had just one boat in production. It was bang on target.
But the mid-size segment tanked. Why play in such a risky market?
If we focus on a single market, then obviously it is a risky move. But there are two aspects as to why this is a little less risky. Our initial plan was to launch with a 37-footer, go up to the 47-foot and then come back to the 27-foot. We switched to the 27-foot first for two reasons. The first was the market needed something more affordable.
Secondly - and this was more crucial - our home market being Abu Dhabi, we did not have access to required infrastructure like marinas which are all under construction.
So we started with the 27-footers because it's a boat you can park in front of your house if you needed to. As we look ahead, for the 37-foot, every indication we have had looks positive.
We could take deposits on 12 boats today, so before a single boat is produced we have buyers. While things are tough, people want value for money. We are not selling boats based on 30-year-old designs or copied or based on other products. These are the latest designs from top American firms and styled in Italy by an award-winning design house.
Profile: Hamad Kassab Bachi CEO, Emocean Marine
Bachi is highly regarded for his entrepreneurial approach, and his extensive experience in the region led to his appointment as CEO of Emocean Marine. Raised in Abu Dhabi and educated in Europe, Bachi took over the management of Fortune Promoseven's operations in Abu Dhabi in 2004 and subsequently registered a growth of 100 per cent year- on-year.
In addition to his duties at Emocean, Bachi is President of The Phoenix Group, a diverse multinational consulting and business group. He is also Chairman of Flavors International, a restaurant development and management company, and on the Boards of Cornerstone Real Estate and Raya Capital.
By Sean Davidson
© Emirates Business 24/7 2010
